ATMI shareholders will receive $34 in cash for each share
of common stock they own, the companies said in a statement
today. The price represents a premium of 26.3 percent over
ATMI’s closing price on Feb. 3.

Suppliers for the semiconductor industry are under pressure
to merge because there are fewer big customers to go around.
Manufacturers such as Samsung Electronics Co., Taiwan
Semiconductor Manufacturing Co. and Intel Corp. increasingly
dominate spending on equipment, reducing the number of major
contracts available, according to Patrick Ho, an analyst for
Stifel Nicolaus & Co.

In November, Danbury, Connecticut-based ATMI hired Barclays
Capital to explore strategic options after demand for the
company’s materials waned in some markets such as
microelectronic wafers.

Entegris, a maker of liquid and gas filters and purifiers
for the semiconductor industry, said today’s deal will
immediately boost its adjusted earnings per share. The purchase
is valued at $850 million when taking into account cash
acquired, including net cash proceeds of $170 million from the
sale of ATMI’s LifeSciences business, Entegris said.

Entegris rose 11 percent to $11.43 at the close in New
York, while ATMI jumped 25 percent to $33.79. Entegris advanced
26 percent last year, and ATMI added 45 percent.

ATMI Chief Executive Officer Douglas Neugold had been
working to cut costs after facing a shrinking customer list.
Income from continuing operations in the fourth quarter fell 46
percent to $6.4 million, the company said in separate statement
today.